Business Purchase Agreement with Guarantee (COVID warranties)
A business or asset sale is the transfer of assets which make up a business
from a seller to a buyer. This Business Purchase Agreement (BPA) includes a
guarantee and has been drafted specifically to consider the COVID-19
pandemic and the associated legal and business risks involved in an asset
or business sale taking place during the pandemic.
This template is based on our BPA with a guarantee and therefore provides
comfort to the buyer that the guarantor will guarantee the performance of
the seller under the BPA, however it also includes the protection of
additional warranties to cover the business fallout and uncertainty created
by the pandemic. The extent to which a business may be affected will vary
from business to business, but most buyers will want increased warranty
protection considering the important changes COVID-19 has introduced to
employment law and health and safety regulation, as well as the potential
impact on the business’s customers and supply chain, legal and regulatory
compliance and business continuity.
The COVID warranties included in this template are only a starting
point and customers may need to add to them depending on the business
Business sales can be complex, and this template has been specifically
drafted to be short form and designed for a relatively simple transaction.
This template includes a guarantee but importantly, other than provisions
related to VAT, does not include any tax provisions or tax warranties.
Independent tax advice must be sought.
Once you have purchased access to the appropriate document folder click on
the “Download Document” button below. You will be asked what you want to do
with the file. It is recommended that you save the document to a location
of your choice prior to viewing.